Countdown’s online sales counter till drop

Supermarket group Countdown’s annual profit has edged up to $205 million as the Commerce Commission mulls what measures it might take to improve competition in the industry.

Results posted with the Companies Office by Woolworths NZ, which trades as Countdown, also showed a big swing towards online orders during a year marked by Covid-related precautions in its stores.

Countdown’s profit for the year to June 27 was up 1.5 per cent, or $3m, consolidating a 10 per cent profit rise in the year prior. The higher profit resulted from the price it paid for groceries falling at a slightly faster pace than its own revenues declined.

The Commerce Commission is making its own calculations of the company’s profitability and that of rival Foodstuffs, which are based more on measures of their return on investment than their accounting profits.

Countdown’s online sales jumped by 28 per cent to $861m, accounting for more than 12 per cent of the supermarket group’s total revenues of $7.1b, while the value of goods sold through its tills fell by $241m, or 4 per cent.

The figures suggest Countdown continues to be well-placed to benefit from the trend towards online grocery shopping.

The commission is expected to soon release what may be the final competing arguments from the chains and from critics of the supermarket duopoly.

They will have their chance to respond to points made during a seven-day conference in October.

The commission is expected to announce by early March at the latest whether it will recommend the Government breaks up their wholesale and retail businesses to help pave the way for a third competing chain, or instead recommends some lesser interventions.

Countdown’s profit for the year to June 27 was up 1.5 per cent, or $3m.